Business Calculation

• What is the formula for total cost?

  fixed costs + Variable costs
• What is the formula for breakeven?

  Fixed costs / ( revenue - variable costs)
• What is the formula for the interest on loans (%)?


  (total repayment- borrowed amount) / borrowed amount x 100
• What is the formula for Net Cashflow?

  inflows - outflows
• How do you calculate the closing balance of a period?

  Opening balance + Net cashflow
• What is the formula for Gross profit?

  revenue - cost of sales
• How do you calculate the Gross profit margin?

  Gross profit / revenue x 100
• What is the formula for Net profit?

  Gross profit - expenses
• How do you calculate the Net profit margin (%)?

  Net profit/ revenue x 100
• How do you calculate Average Rate of Return (%)?

  (total profit/ number of years) / cost of investment
• What is the formula for Margin of Safety?


  sales / breakeven
• What is the formula for revenue?

  Price x Quantity